Illegal investment scheme operator to pay $1.25m

The Federal Court has ordered Sasha Hopkins to pay $1.25 million and be disqualified for four years, in proceedings brought by ASIC.

The court also ordered that The A Team Property Group, five of the investment schemes and associated companies be wound up, and that receivers be appointed over the property of the schemes and related trusts associated with the schemes.

The court found that Hopkins and The A Team Property Group were operating unregistered managed investment schemes and carrying on a financial services business without a licence.

ASIC said Hopkins and The A Team Property Group promoted joint venture property developments on social media, such as Facebook, and offered fixed returns of 25% to 50% to be paid between 12 to 26 months.

Many investors were referred to third parties to establish self-managed superannuation funds to invest in the schemes.

The court found that many of the 217 investors in the schemes were inexperienced in investing and believed that the funds they had invested were secure and that returns would be significant. The investor losses totalled approximately $27 million.

This is the third highest civil penalty ordered against an individual in relation to a proceeding commenced by ASIC.

"ASIC recently announced unscrupulous property investment schemes as a key enforcement priority. ASIC is concerned about consumers being enticed to invest in high-risk property development schemes, particularly where they are advised to set up self-managed superannuation funds to make the investment," ASIC deputy chair Sarah Court said.

"Mr Hopkins and the A Team Property Group failed to hold a financial services licence and operated 11 unregistered managed investment schemes. This ultimately resulted in very significant losses for investors."

Hopkins was also ordered to pay $50,000 of ASIC's costs.

In handing down his judgment, Justice Beach found that Hopkins "had a central role as the founder, designer and operator of the unregistered schemes, including advising individuals to invest their personal savings by setting up a SMSF to invest in a scheme".